CAMBRIDGE, Mass., July 30, 2020 (GLOBE NEWSWIRE) — Cyclerion Therapeutics, Inc. (Nasdaq: CYCN), a clinical-stage biopharmaceutical company developing treatments for serious and orphan diseases, today announced a direct private sale of $24 million of Cyclerion shares of common stock to Slate Path Capital LP and Pappas Capital.
“We are pleased to have strengthened our balance sheet with this private placement with two highly respected investors. This first investment of new capital since our launch funding 16 months ago will accelerate the advancement of clinical studies in our two priority areas, central nervous system and sickle cell disease. We are developing IW-6463 in two diseases, Mitochondrial Encephalomyopathy, Lactic Acidosis and Stroke-like episodes (MELAS) and Alzheimer’s Disease with Vascular pathology (ADv) and preparing for rapid further development of olinciguat in sickle cell disease should the upcoming Phase 2 data support that investment. We believe that each of these programs has the potential to transform the lives of patients with very serious diseases and we look forward to the trial readouts in both programs over the next several months.” said Peter Hecht, Chief Executive Officer of Cyclerion.
In the private placement, the Company sold 6,062,500 shares of common stock at a price of $4.00 per share. The private placement was completed on July 29, 2020.
The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other applicable jurisdiction’s securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws. The Company has agreed to file a registration statement with the U.S. Securities and Exchange Commission registering the resale of the shares of common stock issued in the private placement within 10 business days after the date of the securities purchase agreement for the private placement.
About Cyclerion Therapeutics
Cyclerion Therapeutics is a clinical-stage biopharmaceutical company harnessing the power of sGC pharmacology to discover, develop and commercialize breakthrough treatments for serious and orphan diseases. Lead programs include its vascular-targeted olinciguat in Phase 2 development for sickle cell disease and IW-6463, a pioneering CNS-penetrant sGC stimulator in clinical development for Mitochondrial Encephalomyopathy, Lactic Acidosis and Stroke-like episodes (MELAS) and Alzheimer’s Disease with Vascular pathology (ADv)